Oman bans pyramid marketing; imposes $13,000 fine

Oman’s Ministry of Commerce, Industry and Investment Promotion has issued a directive prohibiting sale, publicity and promotion of goods or commodities or products or services via network or pyramid marketing.

The decision is based on the Trade Law promulgated under Royal Decree No. 55/90, reported Oman News Agency (ONA).

Article (1) of the decision refers to network or pyramid marketing as any means by which providers, marketers or promoters of goods or services ask the consumer to select a list of other consumers to lure them into buying the goods or receive the services in exchange for benefits that the first consumer (recruiter) gets, and then build downline pyramids groups or networks with the purpose of accumulating wealth or gathering money from the largest number of subscribers to the network or the pyramid group.

Article (2) of the decision bans the use of any electronic or non-electronic network/pyramid marketing methodology to purchase, sell, exchange, publicise or promote any goods or services.

Article (3) imposes a fine of RO5,000 ($13,000) against any person who violates the provisions of this decision. The fine will be doubled/multiplied in the event of further violations.

The decision takes effect from the day following its date of publishing in the Official Gazette.

Mubarak Mohammed Al-Dohani, Director-General of Commerce at the Ministry of Commerce, Industry and Investment Promotion, said that the decision to ban network marketing was issued as a step to stem commercial deception, protect completion among establishments and companies and safeguard individuals. Many countries around the world have banned this type of commercial practices, he noted.